What Sacramento Tax Attorney Wants Farmers to Do
A Farmer’s life is not an easy one and when it comes to taxes – it feels just as complicated! So Tax Tiger, a tax attorney in Sacramento, wants to make sure all the farmers out there are getting the help they need when it comes to tax resolution assistance. If you are a farmer, managing a farm, or a related field, these are a few good tips to keep in mind so as to not get in trouble with the Internal Revenue Service.
- Don’t stress over the mess – Insurance has got you covered
If your crops get damaged, the crop insurance you receive still counts as income. It’s important that you report this to the IRS though.
- Get ready to deduct
Any items that you happen to purchase for resale such as livestock – you will most likely get to deduct in the current year of sale.
- No one needs to know yet…
Due to natural causes such as a drought or flood, you may be put in a situation where you have to sell some of your animals that you wouldn’t normally be selling. For all the money you gained, you do not have to report right away.
- Drive or use a lot of fuel?
According to the IRS’ website, “You may be able to claim a tax credit or refund of federal excise taxes on fuel used on your farm for farm work.”
- Average it out
If you made a lot of money this past year, there is a possibility that you will be able to average it out over the last three years. This is especially good if you didn’t have a high income one or more of the past three years in order to lower your taxes.
- The difference between ordinary and necessary
The IRS stated, “Farmers can deduct ordinary and necessary expenses as business expenses. An ordinary farming expense is one that is common and accepted in the farming business. A necessary expense is one that is appropriate for that business.”
Sacramento tax attorney, Tax Tiger, is aware of how intricate taxes are involving farming. For that very reason, it may not be too difficult to make a mistake on one of the tax form questions. With a professional tax lawyer in Sacramento, you won’t have to fret about whether you did your taxes wrong because you will have someone who is knowledgeable in tax law giving you a hand.
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